New operator dispute: SA Lottery teeters on the brink of nine-month shutdown
Court battles, political outrage and claims of cronyism erupt as the Lottery’s future hangs in the balance with a looming operational blackout from June.
South Africa.- South Africa’s National Lottery is staring down a potentially catastrophic nine-month shutdown following explosive legal wrangling over the appointment of a new operator, just days before the current licence expires.
Siyakhaya Holdings – 50 per cent owned by gambling company Gold Rush Consortium – is the new operator of the National Lottery. But the ink was barely dry on the decision before litigation and political firestorms ignited over the R180 billion ($9.6bn) contract.
The timing couldn’t be tighter: Ithuba Holdings, the current operator, ends its tenure on 1 June. Trade, Industry and Competition Minister Parks Tau attempted to bridge the gap with a one-year temporary licence, but this was struck down in court after losing bidder Wina Njalo challenged the move.
The Gauteng High Court ruled the stopgap period could not exceed five months, branding the temporary licence unconstitutional and biased toward Ithuba, according to media reports.
Ithuba, in turn, has declared the five-month window financially unworkable, setting the stage for a full-blown lottery freeze from 1 June. The Department of Trade, Industry and Competition (DTIC) and the National Lotteries Commission (NLC) are now scrambling to appeal the court’s ruling, fearing the worst.
“If the court does not come to its assistance and extend the suspension period, there will be no lottery operations for at least nine months, from 1 June 2025,” National Lotteries Commission chairperson Barney Pityana warned in an affidavit, adding that a shutdown could result in a R1.8 billion loss in good cause funding.
The appointment of Siyakhaya Holdings has raised eyebrows and tempers. The consortium includes prominent ANC-linked businessman Sandile Zungu.
But Ithuba, which has helmed the lottery since 2015, isn’t going quietly.
“We believe that this decision undermines the principles of localisation and inclusive economic growth,” the operator reportedly said, highlighting its grassroots model and national reach.
Political opposition parties, including the Economic Freedom Fighters (EFF), slammed the move as blatant cronyism.
“This is a clear case of state capture,” the party charged.
With legal appeals looming and public interest funding on the line, the stakes have never been higher.
